The draft Compensation Bill has to make provisions for a Government-funded regulator and be...
The draft Compensation Bill has to make provisions for a Government-funded regulator and be considered in tandem with the Legal Services Bill if it is to be effective said John Greenway MP.
Speaking at the Forum of Insurance Lawyers conference Greenway, Chair of the All Party Group on Insurance and Financial Services, gave attendees a preview of debate expected during the second reading of the draft bill on Monday.
Although an advocate of the regulation of claims management companies, Greenway was sceptical that the Compensation Bill in its existing form, especially the clause on negligence, would deter frivolous claims.
Greenway said: “To what extent should the court have discretion. If all the clause on negligence does is reflect what is already being practiced in case law, what is the point? Has it changed anything?”
He praised the efforts of the Claims Standards Council (CSC) but labelled the provisions made in the Compensation Bill for the establishment of a regulator as not being remotely good enough.
Greenway added: “If the Government wants a new regulator, it should say so now. It is far better to create it in the Bill and provide for it in full.”
He stated: “We need to get on with it. It will take years before the Bill will come into effect. Meanwhile, consumers and clients will continue to be ripped off.”
Greenway also argued that the Compensation Bill and Law Services Bill should be considered in tandem instead of against each other as both sought greater regulation of the claims management sector.
